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5/23/2013 6:15AM

Global Market Turmoil Spreads to Europe

Concern the Federal Reserve is poised to reduce its program to stimulate the U.S. economy hit European financial markets hard after causing turmoil in Asia. A flight to haven assets lifted gold and German Bunds at the expense of riskier assets like stocks and industrial metals.

This transcript has been automatically generated and may not be 100% accurate.

I ... the the ... Japanese stocks fell ... seven cents in European stocks ... and I'll fully was just three percent ... is this some global correction going on at the statistics is that it's still a ... lot that everyone sees the readings said it was at the moment ... yes the Muppets are worried ... that the U S Federal Reserve would keep putting money into the markets for ever ... at some point ... we don't know when we deny how much of the Fed will start ... reducing the amount of money is putting in ... and this is making investors a little bit scared beginning to run ... from the arm from risky assets into the sea the site I ... the sexy coincided with news from ... India ... in fact that my vacuum is just the thing and that ... another pretty watering news in terms of the global recovery isn't ... yet serve the will we have this thing called the Chinese manufacturing purchasing managers index ... and if everything goes below fifty which it stated that it suggests contraction rather than expansion ... so it's just possible that the Chinese economy is slowing ... us about the same time as the Fed Reserve is going to stop being sent ... it to take away the punch bowl that they seek to us to say ... that the U S stocks ok but mopping up liquidity ... the point at which Pratt cycle recovery is in the Chinese they just as a ... baby does not like that idea ... I mean Europe as well when saying the repricing manages indexes ... below fifty still so there's still no real recovery in euro ... zone has no recovery in China there's no recovery in in in Europe where is it that come from okay so it was pulling back we saw the Nikkei telling us ... simply because ... on a spreadsheet to ... see ... if there was an extraordinary reaction to what the Federal Reserve chairman Ben been eyeing the ... set ... um it's not clear that he said very much that we didn't know already which is that if things come go on like this so for him to see us seven percent fall in the in Japanese stock prices was an extraordinary reaction ... I'm it's interesting I think the European Stoxx arms down by as much base to seem to think that there was no reaction in Asia allow these boxes will the typical high because of all the liquidity swinging around ... so what was saying now ... Mercedes is a move toward safe havens Sanford's all full and people are moving away from it tidy and bones which is seen as risky ... to Gemma bones which is seen as less risky ... than with an away from commodities like copper ... into those like gold which is seen as havens say wising this move by investors into havens although I think this probably won't go on for that month longer ... it is seen as just a little correction because everything gone so far so boss ... tells investors the state at ... some point ... is this at thirteen point ... which ... keep that up is reassessing the oval that ... most investors think that a correction was needed ... and that's what this is it's a correction ... say we've seen Wall Street stocks at record highs German stocks at record highs ... and U K stocks approaching record highs ... this is seen by a lot of investors now is the sort of healthy correction they were expecting ... before everything starts climbing again ... father thank you ...